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What Are The Drivers for Digital Transformation?

Tue, Jan 31 2017 | Author: PT. Central Data Technology

Digital technologies such as Internet of Things and Artificial Intelligence are changing the way people work. IoT and AI can make business processes more efficient and can help business to create innovative new products and services. Those are part of digital transformation.

Frederik De Breuck, Presales Director for Fujitsu Belgium and Luxembourg said that digital transformation is not easy. It can make disruption, putting the leadership of many participants under pressure. He stated that there are four primary drivers for digital transformation, adoption, complexity, security, and leadership and talent.

It's not just about people

Digital transformation can never be about technology innovation alone. It is about changing the way business create value for customers, and how people work. It embraces the transformation of people, organizations, operational processes, and customer relationships.

De Breuck said that Fujitsu considers that digital is about using the technology to get the best out of human potential, the creativity and ability to make judgements.

People and Organization

There is a fact that changing and organization is not that straightforward. If the past transformations have shown us something, it is the fact that a lot of them fail.

Transformation will only work if organizations are intelligent enough to hear that specific message. There is always an option to fail in every transformation attempt. The question is how do you cooperate as a team, as a business, and as a stakeholder in the market.

Frozen vs Intelligent Organizations

Digital transformation will fail if organizations fail to notice signals from their environment (market, internal, external, customers, etc.), and too slow to innovate and evolve. Every strategy will fail if organizations could not learn from their mistakes. These organizations are considered "frozen" organizations. They may have very smart people, but they are not collaborating together as a team.

Frozen organizations will not succeed in digital transformation. They will remain stuck in peripheral projects that may look as digital at first glance. They will only progress in small, insignificant steps by enforcing and following simple predictable patterns in fact create vulnerability, restrain creativity, and limit the flexibility of the organizations to really focus and transform on the level of people, organizations, operational processes, and customer relationship.

On the contrary, organization will considered intelligent if they succeed in detecting and interpreting even the weakest signals from their environment for possible significance.

To conclude, De Breuck stated that digital transformation is about people, technology, process, etc. It is also about challenging the status quo (rapid evolution, not revolution) and having a closer look on how and why people do things they do.

If digital transformation remains superficial and is just regular transformation because we call it like that, it is ready for a dramatic failure both in the involved organizations and in the market they operate in.

Source: How to Avoid a Frozen Digital Transformation? - Frederik De Breuck, Fujitsu Global Blog (24 Jan 2017)